aging_populations.jpg
Aging Populations
The problems of aging populations in Europe
What are the main facts:
· In the UK the proportion of people retired will grow from 20% in 2000 to 40% by 2040
· In Italy the country spends 19% of its GNP on the pensioners who make up 18% of the population - In 2025 it is estimated that 25% will be pensioners and 33% of GNP will have to be spent on them
· Pensioners are costing more money due to residential homes, health care, social services (home helps etc), increased long term illnesses such as Alzheimer's and they take up a lot more of a Doctor's financial budget & time
Problems facing the elderly
· Many have to live alone - especially women
· Most cannot afford the cost of residential homes and have to sell their homes to fund it
· There are long waits for hospital care
· Those in rural areas have problems getting around due to being too old to drive and few bus services
· Those living in urban areas are fearful of crime
What are the possible solutions?
· Increase the birth rate by encouraging families to have more children as in France
· In a town in Italy each family is given £6000 per child
· Raise the retirement age - In Italy it is now at 67 instead of 65.
· Those who are in work can pay higher wages
· Abolish state pensions and make all people provide for their own pensions
· Increase the workforce by encouraging immigration from poorer countries
A very useful link to lots of information on aging popultaions in the UK - http://news.bbc.co.uk/1/hi/in_depth/uk/2004/ageing/default.stm
France - dealing with an aging population
The birth rate in France has been falling for a number of years. This has led to an increase in the dependency ratio. The dependency ratio is the balance between people who are independent (work and pay tax) and those who depend on them. Ideally, the fewer dependents for each independent person, the better off economically a country is.

To tackle this couples are given a range of incentives to have children:
  • three years of paid parental leave, which can be used by mother or fathers
  • full-time schooling starts at the age of three, fully paid for by the government
  • day care for children younger than three is subsidised by the government
  • the more children a woman has, the earlier she will be allowed to retire on a full pension